What I Wish I'd Known About Equity Before Joining a Unicorn
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What I Wish I'd Known About Equity Before Joining a Unicorn
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Re: What I Wish I'd Known About Equity Before Joining a Unicorn
#2These books on the subject of term sheets are solid
https://www.amazon.com/Term-Sheets-Valuations-Intricacies-Bi...
https://www.amazon.com/Venture-Deals-Smarter-Lawyer-Capitali...
Re: What I Wish I'd Known About Equity Before Joining a Unicorn
#3[deleted]
Re: What I Wish I'd Known About Equity Before Joining a Unicorn
#4These books on the subject of term sheets are solid https://www.amazon.com/Term-Sheets-Valuations-Intricacies-Bi... https://www.amazon.com/Venture-Deals-Smarter-Lawyer-Capitali...
Re: What I Wish I'd Known About Equity Before Joining a Unicorn
#5As always the main rule you need to live by is value the equity at zero and you'll be (maybe) happy. Short of being a founder (and thus not really being offered equity) I have never treated these things as anything beyond a minor on paper "bonus". Given you'd be lucky to get anything more than 1% even as a first employee I find them next to worthless as early stage motivators. Which is how everyone seems to play it - "we're all in this together" - mmm. As long as the salary is market rate I ignore equity altogether.
Re: What I Wish I'd Known About Equity Before Joining a Unicorn
#6These books on the subject of term sheets are solid https://www.amazon.com/Term-Sheets-Valuations-Intricacies-Bi... https://www.amazon.com/Venture-Deals-Smarter-Lawyer-Capitali...
My VC class used this book https://www.amazon.com/Venture-Capital-Finance-Innovation-2n...
Re: What I Wish I'd Known About Equity Before Joining a Unicorn
#7I've been sucked in to paying money to exercise my stock options after I left a company. On paper I could pay off my house today... except I'll most likely never see that money.
Nowadays I ignore equity and look at the bona fide package they offer and how enticing the challenge they have can be and decide based on that. Equity promises just don't fall in the balance anymore.
Re: What I Wish I'd Known About Equity Before Joining a Unicorn
#8Great post and I totally agree. I recently talked to my financial advisor about my current company and we went through all the numbers for various pricing scenarios (of a public offering) over the next 4-6 year, at various valuations. From his point of view, he encourages me to stay the course - quite the opposite from most of the tech friends I know (most usually don't stick around after a few years).
On a side note, I haven't used it in a long time, but why all the hate on Jira? I mean, I remember it does everything including making my breakfast for me, but is it really that bad? I don't remember it being that bad, but maybe others would like to chime in on why they like/dislike it?
Re: What I Wish I'd Known About Equity Before Joining a Unicorn
#9I was so naive when I joined my first startup. When we were purchased, it came to light that the main guy never got around to signing my stock option agreement. He is a fucking mensch and signed it after the fact.
Character buys a unique, abiding respect.
Re: What I Wish I'd Known About Equity Before Joining a Unicorn
#10Should have been titled "... in the USA" as tax rules are very different in other countries.
For instance, in France, you only owe money to the taxperson when you sell your shares, for a profit. If you sell for a loss, this is tax-deducible.